
Glass EL <b 6& 

Rook IWl 



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EXPOSED. 



S 




Democratic speakers and newspapers are 
actively engaged in falsifying the financial 
record, during and since the war. They do 
this in order to persuade the unreflecting and 
ignorant that the present high taxation was 
none of their creation, and to convict their 
opponents of wasteful expenditures since the 
war closed. The national debt is the result 
of Democratic treason. Every rebel statesman, 
every rebel general was a Democrat. Every 
one of them now alive is a Democrat. The 
principal ones were delegates to the convention 
that ru,et in New York' recently. Robert 
Tombs, of Georgia, declared in a recent speech 
that " the Democratic party begun the rebel- 
lion in 1861, and that there would be no peace 
until it was restored to power." The North- 
ern copperheads doubled the natural burden 
of the war by prolonging it at least two years 
through their "fire in the rear" policy. 
They fought for the rebellion by means of 
draft-riots, such as that Horatio Seymour's 
friends led and carried on in New York in 
18G3. Rebellion and Democracy are convert- 
ible terms. If there had been no rebellion 
there would have been no national debt, and 
consequently no high taxation. Hence, the 
Democratic party are the responsible authors 
of this heavy load. The leaders know this, 
and try to shirk the responsibility by the cry 
of " wasteful expenditures and administrative 
corruption." They forget that the Republi- 
cans have not controlled the expenditure, they 
have only made the appropriations . President 
Johnson, who stands endorsed and his policy 
accepted by the recent National Democratic 
Convention, has had executive control, and 
his administration is consequently responsible 
for most of the disbursements since the war 
clo ' <1. If his cotrrse is acceptable to the 
Democracy, then they and not the Republicans 



are responsible for any corruption in the dis- 
bursement of the appropriations made by 
Congress. 

As a specimen of the falsehoods circulated, 
it is stated by a leading Democratic journal, 
in an article now having wide circulation, 
that there have been fifteen hundred million dol- 
lars ($1,500,000,000) raised by taxation since 
the war closed, which have chiefly been dis- 
bursed for the Freedmen's Bureau and recon- 
struction expenses. 

Horatio Seymour, Democratic candidate for 

the Presidency, in a late speech at the Cooper 

Institute, New York, made this charge against 

the Republican party : 

" Since the war closed, in 1865, the Government has 
spent lor its expenses, in addition to its payment on 
principal or interest of public debt, more than one 
thousand million dollars. Of this sum there has been 
nearly eight hundred millions spent on the army and 
navy and for military purposes. This is nearly one- 
third of the national debt. This was spent in time of 
peace." 

See how plain a tale will convict these liars 
and slanderers. Hon. James G. Blaine, mem- 
ber of the House of Representatives from 
Maine, on the 27th of June, made the following 
statement in reply to Seymour's charge : 

" When the war closed, by the surrender of Lee, 
on the 9th of April, 18G5, the armies of the Union 
bore the names of nearly a million men on the rolls; 
and our navy, in its vast and widely-extended duty 
of blockading three thousand miles of coast, had 
nearly five hundred vessels in service, with a corres- 
ponding number of men. The first result of Grant's 
magnificent series of victories and final triumph 
over the rebellion was to muster out these countless 
hosts which had borne our standard with such glory 
on the land and on the sea. Months of pay were due 
to more than half the army; the well-earned closing 
bounty was due to all ; and the sailors, besides 
their back pay, were to receive millions of prize 
money honestly their own. The vast and almost 
incalculable amount needed to be provided for these 
purposes must be had at once, and, thanks to the 
patriotism and the wealth of our people, it was had 
at once. I have this morning visited the Treasury 
Department, and by the official statements which I 
hold in my hand it appears that the disbursements 
for the army and navy for' the ono hundred and 
seventy-four days following Grant's closing victory 
amounted to six hundred and twenty-five million 



dollars. Hence it will be seen that more than three- 
fourths of the eight hundred millions so trium- 
phantly paraded by Governor Seymour as the war 
anil navy expenses of the past three years were 
really disbursed almost in one sum at the close of 

hostilities, as the necessary expenses of musterine out 
our enormous military and naval forces. To suimlv 
this vast sum the current receipts of the Govern- 
ment were consumed, and the people directly 
advanced rive hundred and thirty millions, by sub- 
scribing that amount to the ever-memorable .seven- 
irjirty loan. 

******* 
" Six hundred and twenty-five millions of Gover- 
nor Seymour's eight hundred millions being thus 
expended in mustering out the volunteers, his own 
figures show that the current and legitimate expense 
o both army and navy for the past three years of 
peace have been but one hundred and seventy-five 
million dollars, or a little more than fifty-ei°ht 
millions per annum for both branches of the service 
the Governor's figures thus reduced are not far 
from the truth, and they show a degree of economy 
?£e e unknown in Democratic times. Take the year 
iNi». lor example, in the administration of Mr 
Buchanan, and we find that the expenses of the 
navy were fourteen millions, and of the army 
nearly twenty-six millions-for the two well ni-h 
lorty millions— and that was in gold, and with an 
army and navy of less numbers than have been 
deemed necessary for the security of the public 
peace during the past three years. Taking the dif- 
ference m the amount of force and the fact that the 
expenditures of Mr. Buchanan's administration 
were in coin and the present expenditure in paper, 
it will be seen that the result shows strongly in 
lavor of the economy of army expenses as adminis- 
tered by General Grant. The army to-day, in fact 
costs much less per regiment in paper than it cost 
per regiment in gold under the last Democratic 
fi ures "* a S ° mUCh f ° r Governor Seymour's 



EXPENSES OF THE GOVERNMENT. 

The following correspondence explains itself: 
The large reduction of taxation that has taken 
place since the war closed is the best evidence 
of both the wisdom and economy of the Re- 
publican party as represented by the majority 
in Congress. The totals show how designedly 
false are the Democratic charges. Mr. Wells 
is one of the ablest of our public officers, a 
man of non-partisan character, strictly reli- 
able and thoroughly master of the questions 
on which he writes : 

LETTER OF HON. W. B. ALLISON. 

House of Representatives, 

Committee of Ways and Means, 
Washington, D. C, July 9, i^g, 
Hon. David A. Wells, 

Special Commissioner of the Revenue: 
Sib— J shall esteem it a favor if you will furnish me 
at your earliest convenience, with such official infor- 
mation, bearing upon the following questions, as may 
be in your possession : ' 

1st. What have been the National receipts arid n- 
penditures for the fiscal year ending June SO, 1868 ? ' 
~d. lo what extent has taxation been abated or 

^ , lll'!, Ce the te ™'"ati"" of the war, or since 
July l lobo : 

3d. What have been the expenditures, in Bfiarsaate 
and detail, of the War Department since the surrender 
of Lee, in April, 1865? 

4th. What have been the expenditures of the Navv 
Oepartinent since the surrender of Lee, in April, 1865 i 

SUi. What have been the expenditures, aggregate 
and annual, ot the "Freedmen's Bureau " and for 

Reconstruction,", up to July 1, 1868 I 
1 am yours,' most respectfully, 

WM/B. ALLISON. 



2 

REPLY OF SPECIAL COMMISSIONER WELLS. 

Treasury Department, Office Special 

Commissioner of the Revenue. 
Washington, July 15, iscs 
Hon. William B. Allison, M. C: 

Sir— I have the honor to acknowledge the recemt 
ot your nolo ol July 9, and in reference to the same I 
submit the following statements, premising However 
that only substantial accuracy can be claimed for the 
account of receipts and expenditures for t e U ) 
year ending June 30, 1868; inasmuch as sufficient Unic 
has : not yet elapsed to allow of a perfect a , d A , 
^dement on the books of the Tre^ury Dcpartmem 
of all the accounts of the last quarter of 'the last fiscal 

EIRST.-RECEIPTS AND EXPENDITURES. 

J <eC n!? tS '~ Th l\ " !U - i0 " :l1 recei ' ,ts of revenue Iron, 
.111 »<"it;'». ior the fiscal year ending June 30, 1868 
were substantially as follows : ' ' 

Customs (gold) «, fi o r l(V) nm 

I«'t«-nal Revenue (currency):::".::::-; Kimum 
Miscellaneous (currency;...:..... 470000O0 

Public Lauds and directtax (cui'y)" Xm'fiOO 

Total 8100,300,000 

EXPENDITURES. 

The expenditure of the Government 011 account of 
interest on the pWbllc debt for the fiscal y , 1 i, ■ 
June 30, 1m-,s, W ; L , S 14 1,635.551. 13. y • B 

I'he aggregate expenditures of the several denarl- 

%3mA ^\ c r?" v ^r e ' n ,br ,|,(; "■•'»"■ 53*35$. 

X-_J,yi4,6,4 56, making a total eapen<Uture for the 
fiscal year ending June 30, 1868, of «;,71 550 "••". a ' 
/uKSof'^M™- 1 S " r f'" Sfl - f ' *«•*« "ver'e'xpendi- 
in^ l es l "| al ' VS ' S "" l " Mr , ' x i 1l '" (lilHR ' H affords the follow- 

Intercst.— The present condition of the funded am' 
iutweet-beadsa debt of the United Stajte*, exclusive 
of the bonds issued to the Pacific Railroad Companies 
(the .merest on which is a charge upon the roads! 
necessitates a present annual expenditure on apcoun 
of interest of about §11^6,01)0,000. 

The excess ol 'expenditure on account of-intere-i 
over this amount during the last f IS eal year was due 
mainly to payments on account of accumulated in 
terest on trie " compound interest notes," and will not 
again appear in the future disbursements of the Treas 
tiry on account of interest. 

NATIONAL EXPENDITURES OTHER THAN FOR 
INTEREST. 

Civil Ust.— Embracing the expenditures of the Ex- 
ecutive, Legislative, and Judiciary, Foreign Inter- 
course, Territories, Collection of the Revenue, District 
of Columbia, Public Lands, Mints and Assail Offices 
Coast Survey, Light-Houses, Post-Office Drfiricv,,' 

The expenditures under this head, for the fiscal year 
ending June 30, 1868, were .S53.00ll.846 05. 

The estimate for the present fiscal year, as deduced 
from the appropriation bills, ami including permanent 
appropriations is about $36,000,000. 

Interior Department.— The expenditures undai 
this head tor the fiscal year ending June 30 1868 
were $27,*82,6,6.27, which were apportioned sub: 
stantially as lollows : 

For Pensions cpo m r - r 

For linlmns «**Jti£Z£Z33&affi 

Navy Department.— The expenditures tinder tin* 
head for the fiscal year ending June CO, 1868, were 
#23,7/5,502.72, 

The appropriations for the service of the Navy De- 
partment tor the present fiscal year are $17,300,000 

the following table shows the expenditure ol the 
[f£rf? D 5P artinent si"ce, and including the fiscal year, 

S§2 ?!2,074,5r;a 

iSli ~ C3,2ii,M5 

Iffi i 85.733,292 

lsl « 129 s/;t 771; 

:?V2 43,324,118 

{*,' 31,034,0114 

J300 "5 775 50" 

1809, appropriated ..\SZZ"'.Z"^'.'.\ 17|30q|000 



■ War Department.— The total disbursements made 
under the direction of, or through\the War Depart- 
ment, for the fiscal year ending .Inne GO, i'aSL were 
$123,246,648 62. Of this amount there were paid- 

For Bounties *:w,0M,onu 

For Reimbursing i-jtate War Claims 10,338,188 

For Engineer Bureau, (niainlyi river and 

liarbor improvements) * 6,132,020 

For Payments for property lost or destroyed 
In the military service of the United 
states, act of March 3, 1849, and supple- 
ments thereto, estimated 5,111,3(10 

For Subsistence of Indians, estimated 1,000,000 

k or Freedmen's Bureau 3,215,000 

For Expenses, Beconstruction 1,799,270 

For National Cemeteries 792,800 

For Commutation of Rations of Prisoners 
of War 152,000 

Total _ J$00,533,23S 

Tliis amount, deducted from the aggregate expendi- 
tures above given, indicate the regular and legitimate 
army expenditures for the fiscal year ending June 30, 
1SG8, to have been $56,713,410, of which no inconsid- 
erable part is justly chargeable to the expenses atten- 
dant upon the existence of Indian hostilities upon the 
plains in the Summer and Fall of 1867, which largely 
and exceptionality augmented the cost of transporta- 
tion and subsistence. 

The military appropriations for the current fiscal 
year are $33,081,013. 

CLASSIFICATION OF EXPENDITDEES. 
If we divide the total expenditure of the last fiscal 
year into "ordinary expense*," or those which are re- 
quired to support and maintain the Government and 
'• extraordinary expenses," or those which have been 
the unavoidable results of the war, we have the fol- 
lowing classification : 



ORDINARY EXPENDITURES. 
Fiscal Year, 1887-'68. 
Actnal. 



1868-'69. 
Estimated or 
Appropriated 
civil IJst (Legislative, Execu- 
tive-) $53,0O9,S46 95 $30,000,000 

Interior (Indians) 4,000,000 00 2,500,000 

Nitvv Department 25,775,502 72 17,300,000 

War Department 56,713,410 00 33,081,013 

Engineer Bureau (Rivers and 
Harbors) 6,132,020 00 1,500,000 

Total $140,231,379 07 $90,3S1,013 

EXTRAORDINARY EXPENDITURES. 



lS6V-'68. 
Actual. 



Interest Public Debt sj 

Pensions 

1 Inn 11 ties 

Freedmen's Bureau 

Reconstruction expenses 

Reimbursing States 

Payment for property lost or 
destroyed In the military ser- 
vice oi the United States 

Subsistence of Indians 

National cemeteries 

Commutation of Prisoner's ra- 
tions 



l«68-'69 
Estimated or 
Appropriated 
41,035,551 $126,000,000 
23,282,076 25,000,000 



38,000,000 
3,215,000 
1,799,270 

10,330.188 



5,111.300 

1,000,000 

792,800 

152.000 



40,000,000 
500,000 



6,000,01 X) 
1,000,W)0 



Total $225,318,845 $198,500,000 

SECOND.-REDUCTION OF TAXATION. 

The amount of taxes abated or repealed since the 
close of the war has been estimated as follows: 

By act of July 13, 1806 $60,000,000 

By act of March 2, 1807 40,000,000 

By act of Feb. 3, 1S68, (exemption of 

raw cotton) 23,769,000 

By act of March 31, 1805 43,500,000 

Total $107,209,000 

By the system of Internal Revenue which prevailed 
m the close of the war, taxation may be said to have 
been all but universal; land, agricultural produce, 
unmanufactured lumber, breadstuff's and a few other 
forms of property or products only being excepted. An 
aggregate of (en thousand distinct articles or products 
made available 11s sources of Internal Revenue in July, 
JS65, would probably be an under rather than an over 
estimate. At the present time, of all manufactured 
articles of products of industry, the following only are 
subject to specific or direct taxation : distilled spirits, 



fermented liquors, manufactured tobacco, gas, matches. 
and playing-cards. Perfumery, cosmetics, pafenl 
medicines, and a t\:w other manufactured articles, arc 
subjected to a stamp-tax proportioned to their seilnii: 
price. Since July, 1865, furthermore, the additional 
tax of five per cent, on incomes in excess of $5,u00 
has been repealed, and the exemption in all incomes 
has been increased from $600 to $1,000. The taxation 
formerly imposed on the gross receipts accruing from 
the transportation of merchandise has also been en 
tlrely removed. Coincident Willi the above reduction 
of taxation, or from the 31st of August, 1865, to the 
30th of June, 1868, the aggregate of the national in-; 
debtedness, including cash in the Treasury, exhibits a 
reduction in round numbers of ($250,000,000) two hun- 
dred and ffty millions ! On this abatement of tin: 
debt, the reduction of the interest, calculated at six 
per centum, would be ($15,000,000) fifteen millions 
per annum. 

THIRD.— EXPENDITURES OF THE WAR 

DEPAR TMENT. 
The aggregate expenditures made through, or under 
the direction of the War Department, from April 1, 
1865, to June 30, 1868, inclusive, were $917,117,0-13 43. 
Of this aggregate, the disbursements for nine months, 
or from April 1, 1865, to December 31, of the same 
year, as stated by quarters, were as follows: 

From April 1 to June 30, 1805 $-114,196,277 30 

From June 30 to Sept. 30, 1805 105,309,237 :<2 

From Sept. 30 to Dec. 31, 1805 OS.122,541 05 

Total $047,088,050 33 

It thus appears that of the above total expenditures 
of the War Department, $647,688,000, or 70 per cent, 
of the whole, were directly contingent upon the ter- 
mination of the war and the disbanding of the army, 
and were disbursed within the nine months immedi- 
ately succeeding the surrender of Lee, in April, 1865. 
The balance of expenditure charged to the War De- 
partment on the books of the Treasury, viz : $269,428,- 
987 10, covers a period of thirty months, or from Jan- 
uary 1, 1866, to June 30, 1868, and represents iln 
disbursements further contingent upon the termination 
of the war, such as arrears of pay and transportation 
of troops; the regular expenses of the military est.ili 
lishment; the expense of the Indian War in ilie 
Summer and Fall of 1867; the payment of bounties 
-($49,382,859 from July 1, 1866, to June 30, 1868) ; the 
payments for property lost or destroyed in the mili- 
tary service of the United States ($11,000,000); He- 
reimbursement of State claims (§10,330,000 in 1S07-S); 
river and harbor improvements, and the expenses 01 
fortifications; subsistence of Indians; Fieedn.enV 
Bureau; expenses of Reconstruction, &c, &c. 

FOURTH-EXPENDITURES OF THE NAVY 
DEPARTMENT. 
The expenditures of the Navy Department from 
April 1, 1865, to June 30, 1868, were $133,119,296 37. 
Of this amount, $59,847,889 58, or 45 per cent., were 
disbursed within the nine months immediately suc- 
ceeding the termination of the war in April, 1865. 
The balance of the above expenditure, $73,271,407, 
covers the regular expenses of the navy for a period 
of thirty months, ending July 30, 1S68, as well as the 
disbursements on account of prize money and for the 
settlement of contracts entered into prior to the ter- 
mination of the war. 

FIFTH- FREEDMEN'S B UREA U AND RECON- 
STRUCTION. 
According to the accounts of the Treasury the 
expenses of the Freedmen's Bureau, since its organi- 
zation in 1866, have been as follows : 

Disbursements prior to June 30, 1S67 $2,402,000 

Disbursements from July 1, 1S07, to June 

30,186a 3,215,000 

Total $5,017,000 

Concerning the proportion of this expenditure in- 
curred by the Bureau tor the relief of the starving and 
destitute of both races, and for educational or other 
purposes, the Treasury has no information. 

According to the account of the Treasury, tho ex- 
penditures contingent upon the acts of Congress regu- 
lating " Reconstruction," have been as follows : 

Disbursements prior to June 30, 1807 $145,430 5G 

Disbursements from July 1 , 1SG7, to June 

30T1SO8 1,799,270 00 

Total $2,314,700 SG 






The above statement*, derived trom the books nnd 
accounts of the Treasury Department, are believed to 
be substantially correct. 

I am yours, very- respect fuU^ a _ ^^ 

U. 3. Special Commissioner of Revenue. 

Appropriations for the Current Fiscal Year. 

Mr. Blaine, already quoted, thus states the 
appropriations made for the fiscal year ending 
June 30, 1869: 

For the ordinary expenditures of Government for the 
fiscal year which has just begun the appropriations are 
as follows : 
Executive, legislative, and judicial, em- 

^n?o* n De P al ' tment SalariG ? ^.f 17.480.000 CO 

For hi^mv ."::'.:'.:"'.*.'.'.'.'.'.'.'.'.'.'.'.'.'. 33,081,01310 

For the Navy '...."..""". 17,500,000 00 

West Point Military Academy SJf'SSS £2 

Consular and diplomatic service... V^'tl X) 

Post-Office Department iWvm m 

Indian bureau, treaties, &c 3'wK'Sflh ffi 

Bivers and harbors fr™ 000 09 

Collecting the Revenue :....,. j,joj,vw ou 

Sundry Civil Expenditures connected 

with the various Departments G.O-O.OUJ to 

Miscellaneous expenses of all kinds, in- 
cluding cost of certain public bmlclmgs 
throughout the country, expenses ot 
reconstruction, expense of closing up 

Freedmen's Bureau.. Vc ••••• J.ooo.uuu oo 

Deficiencies of various kinds in the uii- 
f'erent appropriations ..oou.uuu w 

Making a total of. ?1QI!,S18,447 10 



THE FREEDMEN'S BUREAU — LETTER OF GEXICRAh 
0. O. HOWARD. 

A Democratic member of Congress from 
Pennsylvania recently delivered a caret ully 
elaborated tissue of misstatements with regard 
to the Freedmen's Bureau, to which the Com- 
missioner replies as follows : 

" War Department, 
Bureau of Refugees, Frcedmen and Abandoned Lands, 
Washington, July 17, 180b. 

H J>;r T '&V-Iu IO t'ne speech of Hon. B. M. Boyer, of 
Pennsylvania, June 30. 1868, printed in the GM>«July 
15, there are manv siatemenls and miercners calcu- 
lated to make a false impression respecting the ex- 
penses of the Freedmen's Bureau. 



By confusing estimates Willi actual expenditures, 
and by repeating both costs and estimates, he foots up 
amounts nearly four times the true sum. Forinstance, 
be eives General Howard's estimate of the probable 
expenses for the year ending June 30, 186/, as $11.- 
684,450, and says, " this estimate is much under tho 

aC Tln 1 s C estimate was reduced to $6,914,450 which 
amount was appropriated by Congress. But the actual 
expenditure for all purposes during the same year was 
S"^ 070 459 97 

A correct exhibit of the cash receipts and expenses 
is given in your report of March 10, 1868. This makes 
the total sum expended from the organization ot the 
Bureau (including assumed accounts of Department ol 
Freedmen's Affairs from January 1,1865,) to January 
1, 1868, $5,955,888 49. This includes $500,000, Special 
Relief Fund, and $50,000 transferred to Agricultural 
Bureau. , , - , 

All receipts from rents of abandoned lands, Bales 
of crops, taxes, fines, and all miscellaneous sources, 
are accounted for in this exhibit. All supplies fur- 
nished by the Quartermaster, Commissary, and 
Medical Departments, after July 1, 1866, were 
charged to the Bureau and paid for out of the appro- 

The supplies furnished previous to that date, 
not paid for, were— 

Quartermaster's property •^t'.'S?. w 

Medical Stores - *»'*» 1? 

Commissary Stores ,i,/-i,jii do 

Total $2,330,788 72 

Acid am'ts'exp'eiided i'rom appropriates, 5,055,888 -10 

Total $8,280,677 21 

Nothing can possibly be added, unless it be the 
pay of army officers on duty in the Bureau, whe 
would have received the same pay had they not 
been detailed lor this duty, which, according to Mr 
Boyer's figures, amounted the first year to $541,194. 
Multiplied by three, this gives $1,023,58:3, though 
the number of officers serving now in the Bureau is 
only one hundred and forty-seven. Making the 
most liberal allowance, the total cost of the Bureau 

for three years has been $9,9;j4,370 /2 

< lr, per annum 3,318,123 5i 

Instead of over twelve millions annually, as stated 
by Mr. Boyer. 

A large part of these expenditures was lor tne 
benefit of Southern whites reduced to poverty by 
the rebellion. 

Very respectfully, your obedient servant, 

O. O. HOWARD, 
Major-General, Commissioner. 






GlB'WN Brothers, Printers, Washingl'on.'Drc. 



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